Overview & Objectives
Students learn budgeting, cash flow, and financing. Outcomes:
- Understand income, costs, and profit
- Develop simple financial plans
- Explore funding options
Theoretical Foundations
Financial management ensures a business operates sustainably. Without managing money, even a great
product can fail.
Key Concepts:
Budgeting
Planning for expenses and income.
Example: List costs for ingredients, marketing, and tools.
Cash Flow
Tracking money in and out.
- Positive cash flow: more money coming in than going out
- Negative cash flow: spend more than you earn
Profit vs Revenue
- Revenue: Money earned
- Costs: Money spent
- Profit: Revenue minus costs
Funding Sources
- Personal savings
- Family/friends
- Crowdfunding (Kickstarter, GoFundMe)
- Small loans or grants
Why it matters:
- Financial planning prevents overspending
- Knowing your finances supports growth and sustainability
Practical Exercises
- Create a budget table for your business
- Simulate cash flow for one month
- Explore funding options and their advantages/disadvantages
Mini Case Study: "EcoBottle"
$100 start-up. $60 spent on ingredients, leaving $40 for marketing. Daily sales tracked to ensure profit.
Summary & Key Takeaways
- Money management is essential for sustainability
- Budgeting and cash flow control prevent failure
- Knowing funding options ensures growth opportunities